Top 2 Materials Stocks That May Collapse This Month

As of Oct. 30, 2024, two stocks in the materials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

ASP Isotopes Inc (NASDAQ:ASPI)

• On Oct. 30, ASP Isotopes entered into term sheet with TerraPower, LLC for construction of a HALEU Production Facility. “Over the last several decades, the scientists at ASP Isotopes have developed some of the world’s most advanced isotope enrichment technologies. This term sheet is further validation of our belief that ASP Isotopes can offer scalable and capital efficient technology solutions to the supply challenges which exist in global isotope markets” said Paul Mann, Chairman and CEO of ASP Isotopes, and Chairman and CEO of QLE. The company's stock gained around 107% over the past month and has a 52-week high of $6.00.
• RSI Value: 87.27                              
• ASPI Price Action: Shares of ASP Isotopes gained 13.2% to close at $5.76 on Tuesday.

Purecycle Technologies Inc (NASDAQ:PCT)

• On Oct. 28, PureCycle and SKGC agreed to discontinue joint venture, that was intended to construct and operate recycled polypropylene purification plant at SKGC Ulsan Site. The company's stock gained around 47% over the past month and has a 52-week high of $15.58.
• RSI Value: 79.37
• PCT Price Action: Shares of Purecycle Technologies rose 0.6% to close at $14.00 on Tuesday.

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